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Mumbai secures 3rd spot on Prime Global Cities Index Q4 2023 after Manila and Dubai
Mumbai's luxury homes witness a10% price growth year-on-year driven primarily by affluent homebuyers looking for a lifestyle upgrade
Luxury homes in Mumbai, New Delhi and Bengaluru recorded an increase in their average annual prices in Q4 2023 with Mumbai witnessing a 10% growth, Delhi-NCR 4.2% and Bengaluru a 2.2% rise, Knight Frank’s Prime Global Cities Index showed.
Also Read: Mumbai is now among the world's top 10 luxury real estate markets: Knight Frank Wealth Report 2024
Mumbai recorded the third highest year-on-year (YoY) growth in prime residential prices in Q4 2023, pushing it up the ranking table by 5 places to 3rd position from its 8th position in Q4 2022. NCR rose from 28th rank in Q4 2022 to 16th in Q4 2023 with a growth of 4.2% YoY. However, Bengaluru observed a decline in ranking from 20th place in Q4 2022 to 27th rank in Q4 2023, even while it recorded a 2.2% YoY growth in residential prices, it showed.
The Knight Frank Prime Global Cities Index Q4 2023 showed that Manila claimed the top spot in the ranking with a 26.3% annual rise in prices. The capital city’s performance is attributed to strong domestic and foreign investments. Dubai with 15.1% YoY growth ranks 2nd in the index and Mumbai third with 10% YoY growth, it showed.
Also Read: Office buildings in Mumbai’s Bandra Kurla Complex command higher prices than Manhattan
The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 45 cities worldwide. The index tracks nominal prices in local currency.
The rise in global prime residential price index was recorded at 3.7% across the 45 markets in the 12-month period ending December 2023. This is the strongest growth rate recorded since Q3 2022 with 82% of cities seeing growth on an annual basis.
"The strong growth in prime prices is a reflection of the surge in demand seen in this residential segment across markets in India. With homebuyers increasingly prioritizing lifestyle upgrades, bolstered by the nation's stable economic outlook and positive market sentiment, this segment should likely see price levels continue to elevate in the near term,” said Shishir Baijal, Chairman and Managing Director at Knight Frank India.
Liam Bailey, Knight Frank's Global Head of Research said “The biggest impact of the rate tightening cycle in the past 12-months has been on sales volumes, which have fallen in most markets by around 10% to 20%. While prices did initially fall as rates rose in 2022, as supply has been squeezed prices have ticked up. Rate cuts in the second half of 2024 will add further impetus to the market.”
